I agree with Amy, buns love shredding stuff!
My boys are so messy, but the dead bunny flops and binkys around the house tell me they are having a blast shredding stuff!
What I usually give them is the large willow baskets at Walmart ($1.88 and $4.88 for the large) and I also find some at the thrift store for as little as a dime. I also buy the willow balls from Walmart and they love tossing them around.
Another thing they get comes from the rescue I volunteer for. One of the girls has organic apple tree's and muskedine (sp?) vines and she dries them out for the buns. Harper has gotten them for 2 years and now all the boys (and girl!) get them and lovvveee to shred the bark, then chew the wood.
And also, I buy this 20 pack of wooden blocks from Petco for $3.99.It's the larger size for guinea pigs and bunnies, and they are so adorable and the buns love tossing them around, as does the guinea pig. Great for keeping those teeth trimmed too!
Another house favorite is old phone books. Wooooowheeee, what a mess! But the boy's absolutely LOVE their shreded phone books, LOL.
Miah, you oughta try these things with your bunnies. $5 isn't outrageous, heck that's cheap! Store bought toys cost me more thanthat, and my buns almost always pass those up for the willow baskets,cardboard boxes, and a good 'olphone book!
To answer the original question, BunBuns, that basket looks just fine and as Nadia said -- Willow is usually untreated and safe for the bunnies. Have fun watching the bunnies enjoy the basket!